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Government of Ontario Supports Beef Sector Through Enhancements to Loan Guarantee Program and Investment in Ontario Beef

July 29, 2024

Photo (LtoR): Dave DeNure, Vice Chair, Feeder Finance Executive Committee; MPP John Jordan; Agriculture Minister Rob Flack; Kurtis and Rachel McRae & Family; Craig McLaughlin, President, Beef Farmers of Ontario; Al Noorloos, President, Ontario Cattle Feeders’ Association; Richard Horne, Executive Director, Beef Farmers of Ontario; Don Badour, Director, Beef Farmers of Ontario; John Baker, Director, Ontario Beef Market Development Program

July 29, 2024 (Carleton Place, Ont.) – The Beef Farmers of Ontario (BFO) is extremely appreciative of the Government of Ontario’s swift response in implementing enhancements to the Feeder Cattle Loan Guarantee Program to ensure beef farmers have reliable access to affordable credit, as well as their investment in our Ontario Beef Market Development Program to help increase the demand for Ontario beef in domestic and international markets. The announcement was made this morning at beef farm in eastern Ontario by Rob Flack, Ontario’s Minister of Agriculture, Food and Agribusiness and MPP John Jordan, Parliamentary Assistant to the Minister of Agriculture, Food and Agribusiness.

As announced today, the provincial government guarantee under the Feeder Cattle Loan Guarantee Program will increase from $65 million to $125 million, which will allow total program lending to grow to $500 million. In addition, loan limits for individuals and corporations will be doubled. These much-needed changes will allow farmers to respond to the escalation in cattle prices, make new investments, and ultimately contribute to our sector’s ability to maintain a sufficient supply of Ontario beef for the marketplace.

“Forty-one per cent of the members in the Feeder Cattle Loan Guarantee Program are under the age of forty,” says Craig McLaughlin, BFO President. “Having a reliable source of credit at affordable rates through this program make it attractive to new and beginning farmers who are often challenged to secure competitive loan rates privately. This program is one tool we rely on to help grow our sector and it’s important it continues to respond to the needs of farmers and the financial realities of beef farming.”

Minister Flack also announced the province’s investment of $2 million over four years in our industry-led Ontario Beef Market Development Program. The funding will be used to augment the work we have been doing since 2019 to develop new brands and markets for Ontario beef both domestically and around the world.

“Since the launch of our market development program, we’ve made significant strides in improving market share for Ontario beef, as well as experienced a decline in beef imports coming into the province,” shares John Baker, Director of the Ontario Beef Market Development Program. “The funding from the province will be directed to our participation in events and trade missions, both of which are valuable tools to help us connect with key decision makers and influencers in our priority export markets.”

BFO is grateful to the Minister and the Government of Ontario for their recognition of the significance and impact both of these programs have on beef farmers and their families, the Ontario beef sector, and the broader agri-food economy. We would also like to thank the McRae family for taking the time to host Minister Flack and MPP Jordan for the announcement on their farm.

BACKGROUND

The Ontario Feeder Cattle Loan Guarantee Program was established in 1990 to provide low-interest loans to beef farmers in the province through 14 local co-operatives. The program is backed by a 25 per cent provincial government guarantee, which has never been drawn on in the program's history, and speaks to the strength and effectiveness of the program.

The Ontario Beef Market Development Program was launched in 2019 by the Beef Farmers of Ontario and the Ontario Cattle Feeders’ Association. Over the last five years, Ontario’s beef farmers have been heavily investing in an industry-led initiative to grow domestic and export markets for Ontario-branded beef, maximize the value of Ontario beef products, and share the important sustainability story of Ontario beef with the public and our customers.


GOVERNMENT OF ONTARIO RELEASE
Ontario Beefing Up Support for Cattle Farmers

CARLETON PLACE, ON — The Ontario government is strengthening the province’s beef sector by increasing financing available through the Feeder Cattle Loan Guarantee Program to $500 million. The province is also investing in an industry-led market development program to increase domestic and international sales.

“Our province’s Grow Ontario Strategy commits to strengthening the province’s agriculture and food supply chain and increasing agri-food trade by eight per cent per year,” said Rob Flack, Minister of Agriculture, Food and Agribusiness. “The actions we’re announcing today support both of these goals and will help Ontario’s beef sector capture new opportunities now and in the future.”

The expansion of the Feeder Cattle Loan Guarantee Program will see available funding for beef farmers increase by $240 million to $500 million. The program provides low-interest financing to support the short-term needs and long-term growth of feeder cattle co-operatives and their members. Financing is provided by private sector lenders and the Ontario government guarantees the value of 25 per cent of the loans.

The government is also doubling the maximum loan a farmer can access and making other changes to better support the industry. These include administrative changes that will allow the Ministry of Agriculture, Food and Agribusiness to move funding allocations more easily between feeder co-ops to better meet producer demand.

At the same time, the government is investing $2 million over four years in the Ontario Beef Market Development Program. Funding will be used to support activities that enhance the competitiveness of Ontario products at home and beyond our borders, support the expansion of existing Ontario beef brands, and aid in the development of new Ontario beef brands. Eligible activities include participating in trade shows and trade missions and welcoming potential out-of-market buyers to tour Ontario beef farms and processing facilities.

These actions build on other supports to expand markets for Ontario agriculture and agri-food businesses, such as the $12-million Grow Ontario Market Initiative funded through the Sustainable Canadian Agricultural Partnership.

QUICK FACTS

  • Ontario’s agricultural loan guarantee programs operate with minimal government support and have safeguards to minimize the risk of a guarantee claim.
  • The Feeder Cattle Loan Guarantee Program was launched in 1990 and the government guarantee has not been used in the history of the program.
  • The Ontario Beef Market Development Program was launched in 2019 by the Beef Farmers of Ontario and the Ontario Cattle Feeders’ Association.
  • Ontario is home to 12,730 beef producers that marketed cattle and calves worth $1.75 billion in farm cash receipts in 2022. The province is the second largest cattle producer in Canada.

QUOTES

"We’re appreciative of the Government of Ontario’s commitment to these valuable programs, both of which play a significant role in our sector’s ability to maintain and grow a consistent supply of Ontario beef for our communities here at home and around the world. Increasing the government guarantee and the individual loan limits under the Ontario Feeder Cattle Loan Guarantee Program will allow the program to better respond to the escalation in cattle prices, and growing interest from young and beginning farmers, as well as existing farmers who value the program for its reliable access to affordable credit."

- Craig McLaughlin
President, Beef Farmers of Ontario

"Over the last five years, Ontario’s beef farmers have been heavily investing in an industry-led initiative to grow domestic and export markets for Ontario-branded beef, maximize the value of Ontario beef products, and share the important sustainability story of Ontario beef with the public and our customers. We have an outstanding product and are well positioned to increase market share of Ontario beef in many key global markets, and this investment will help augment our market development efforts both domestically and internationally."

- John Baker
Director, Ontario Beef Market Development Program

VIEW THE FULL GOVERNMENT OF ONTARIO NEW RELEASE HERE

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